Shell Plans to Cut 1,000 Jobs
February 4, 2010
Reuters reports Royal Dutch Shell Plc said it planned even deeper cuts to its oil refining and retail operations after downstream weakness caused a 75 percent fall in fourth-quarter profits to $1.18 billion. Chief Executive future Peter Voser pledged $1 billion in cost cuts and 1,000 job reductions in 2010 -- mainly to come from the downstream unit -- and upped his target for refinery divestments. The company also added it would continue to shift the focus of its downstream business to Asia, where rising fuel demand could ensure better profits. Shell also affirmed its targets to grow oil and gas production, the main driver for oil companies'' earnings, by 2-3 percent over 2009-2012. Excess refining capacity, due to lower fuel demand caused by the global recession, and new refinery startups in the Middle East and Asia, has hit crude processing margins and profits at all the oil majors.